Among the eight investors, Guangdong Zhujiang Investment Co. Ltd. will invest 270 million yuan (32.6 million US dollars) to the railway, 14.26 percent of the total capital funds.

With a total length of 200 kilometers and total cost of 4.1 billion yuan (495 million dollars), the railway will connect Qian'an, one of the stations of Daqin railway, China's first coal railway, to Caofeidian port at Bohai.

At present most of the coal produced by north China's Shanxi Province is transported from Datong to Qinghuangdao and then shipped to south China. Sometimes, however, coal has been overstocked in Qinhuangdao.

After the Qiancao Railway (Qian'an to Caofeidian) is completed, part of the coal carried by Daqin can be diverted to Caofeidian and Jingtang port near Caofeidian.

Zhang Jianping, deputy director of Development and Planning Department of the ministry, said though the Qiancao Railway is not long, it is one of the most important projects that the ministry has launched to attract private capital.

Railways used to be funded exclusively with state capital.

Zhang said the ministry will launch more projects to attract private investors.